Q: Rather than focussing on the challenges of being a female entrepreneur, what gender-specific strengths can women leverage when running a business or leading an organisation?

Brindha Selvadurai (BS): Women are inherently driven to rise to the challenge. This was particularly evident during the pandemic when many women stepped up and became the breadwinners of the family.

They are also more empathetic and these qualities make them great leaders. Female entrepreneurs have also become better at identifying problems, communicating them and seeking support. Through AccelerateHer, which is a programme run by Hatch to empower women entrepreneurs across the country, I have seen how they transform their mindsets to see themselves as capable entrepreneurs who own their successes.

Q: Please explain the concept behind HerCapital and how it can benefit local female entrepreneurs.

BS: Research in the South Asian market has shown that, as of 2019, only nine percent of private equity and venture capital funding goes to female-led businesses. Sri Lanka also lacks an investment ecosystem for women entrepreneurs. Only 25 percent of entrepreneurs are women despite representing a majority of the population (52%).

Seeing this lack of diversity, Hatch introduced HerCapital, which is Sri Lanka’s first gender-smart funding scheme. It aims to empower early stage startups through a well-structured programme that includes mentoring and financial support. HerCapital will address existing gender inequalities through investment and support women-led businesses, while championing equal representation within startups.

The fund’s gender balance comes from the adoption of practices such as gender analysis, gender due diligence and deal structuring. It also addresses knowing when and how to ask for help since fundraising can be overwhelming for any first-time founder especially women. HerCapital invests exclusively in women-founded companies and in the power of exceptional female talent.

Q: As part of HerCapital’s Investment Committee, what role can organisations such as yours play in expanding women’s networks to accommodate female entrepreneurs from around the island?

Sonia Hirdaramani (SH): HerCapital plays an important role in connecting women with mentors and resources for guidance and support, and access to capital. The Investment Committee is made up of these connectors who are passionate about sharing knowledge and ensuring that women are put in touch with the network they need to grow their businesses, whatever their challenges may be – branding, marketing, legal and compliance, sales, financials etc.

Many of the companies we are looking at are run by first-time founders who will benefit from a supportive ecosystem of mentors to nurture them. We have come together to invest in women and in the future of a more equitable Sri Lanka.

Q: It is widely known that investors will always support entrepreneurs who look and think like them, and this often means male investors supporting male entrepreneurs. How can HerCapital bridge this gap in Sri Lanka?

SH: Although that phenomenon has existed for generations, never before has diversity and inclusion been as important as it is today.

Historically, investors have almost singularly focussed on chasing ‘big numbers.’ Although the growth trajectory of a company is essential – at HerCapital, we look at smaller companies at a nascent stage because of our underlying objective to build a strong foundation of female entrepreneurs.

We aim to make a systemic change in the investment landscape in Sri Lanka. In the long-term, these companies will scale and hopefully inspire a new generation of female founders. Here’s what Forbes had to say: “Companies with at least one female or one ethnically diverse founder generate over 60 percent in business value.”

Q: Prior to joining the AccelerateHer programme, what challenges did you face when seeking funding for your startup?

Shivani Tyronne (ST): When I launched my business during the pandemic, I found that there was insufficient information with regard to funding. I thought only banks could provide loans for startups but it was not encouraging due to the high interest rates and extensive paperwork.

An idea/initiative was not welcomed based on an entrepreneur’s competencies or skills but on her capacity to repay. Sri Lankan culture has always encouraged a debt free lifestyle, so that kept me from seeking financial support. Instead, I sought support from my family and it was sufficient to run the business but not to scale.

AccelerateHer broke this glass ceiling and the grant allowed me to scale my business to serve increasing market demand. Backed by the training and motivation I received from mentors and the AccelerateHer community, my business was fully functional even during the economic crisis. Every effort during the crisis was repaid with customer support and love.

Q: What advice would you give young women who are aspiring to start their own business?

ST: Right now, Sri Lanka needs entrepreneurs who can bring new ideas to contribute to innovation and provide solutions for gaps in the local and global markets.

Pursuing the right founding team is also very important because they will eventually become your family. Have your pitch decks ready and updated at all times, take part in virtual or physical seminars and workshops, list potential investors and schedule meetings, present your idea, negotiate and seal the deal.

It’s demanding and requires a great deal of background work in terms of your company’s future value, revenue projections, capacity building and more. You can find many articles online to educate and prepare yourself.

– Compiled by Avanti Samarasekera

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